Economy
Hungary to scrap all but two tax allowances - Finmin
“There is no other option but to change the size of (tax) allowances radically", local newswire MTI cited Veres as telling a conference.
There is already a HUF 210 bn whole in the country's 2009 budget, which would be filled via a serious of changes to the system of taxes and contributions, but tax preferences “cost" the budget HUF 215 bn and Veres said it is unacceptable.
The cabinet would retain only two preferences, one for families with three or more children and one for long-term savings.
With regard to fringe benefits Veres said there must be changes that will create a just and balanced system. He noted the current “discriminatory" system cannot be sustained, adding that while some employer spends HUF 6,000 on this others pay a hundred times as much.
He stressed that the country's financial system is stable and sound and will be able to fulfil its liabilities in the years to come. Maintaining confidence in Hungary remains a key priority and that is why spending must be curbed and the budget deficit kept under 3.0% of GDP, Veres said.
Regarding a possible acceleration to the euro zone entry process, Veres said it would be not about easing the conditions only perhaps shortening the time aspiring countries would need to spend in ERM-2, the anteroom for euro zone accession. But there is no promise (from Brussels) even for that, he added.
There is already a HUF 210 bn whole in the country's 2009 budget, which would be filled via a serious of changes to the system of taxes and contributions, but tax preferences “cost" the budget HUF 215 bn and Veres said it is unacceptable.
The cabinet would retain only two preferences, one for families with three or more children and one for long-term savings.
With regard to fringe benefits Veres said there must be changes that will create a just and balanced system. He noted the current “discriminatory" system cannot be sustained, adding that while some employer spends HUF 6,000 on this others pay a hundred times as much.
He stressed that the country's financial system is stable and sound and will be able to fulfil its liabilities in the years to come. Maintaining confidence in Hungary remains a key priority and that is why spending must be curbed and the budget deficit kept under 3.0% of GDP, Veres said.
Regarding a possible acceleration to the euro zone entry process, Veres said it would be not about easing the conditions only perhaps shortening the time aspiring countries would need to spend in ERM-2, the anteroom for euro zone accession. But there is no promise (from Brussels) even for that, he added.
